The Sunny Side of Higher Interest Rates

Savers finally will be rewarded, the elderly will get needed income, and housing will remain affordable, even if mortgage rates climb to 6%.

Despite alarms in the media about the crushing effects of the recent jump in interest rates, rates are still on the low side of normal, even when considered against the U.S. economy's lackluster performance.

Start with the rise in the 30-year mortgage rate, to 4.56% from 3.74% a month ago. The hike still puts the housing affordability index at a historically high level, meaning single-family houses are still quite attainable (see...